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Phoenix Gold Raising Capital

Phoenix Gold (ASX: PXG) is finalising a major capital raising and has placed its securities into a trading halt.

The company had earlier this week completed a Conceptual Mining Study into the development of its wholly owned Castle Hill and Broads Dam Projects in Western Australia's goldfields that demonstrate a robust and highly profitable project.

Positive results from a five year mining plan include:

- Maximum gold production (yr 4) of 135,000 ounces;
- A capital cost of A$131 million;
- A cash operating cost (5 years, pre-royalties) of A$840 per ounce;
- Revenue over 5 years (1,600/oz) of A$915.9 million; and
- Net cash flow (before CAPEX, royalties and tax) of A$435.8 million.

While several projects - Red Dam, Emu and Picante - located adjacent to Castle Hill, were included to enable efficient scheduling of the proposed mining fleet, other resources located outside the study's 15 kilometre radius were not included.

This includes the Catherwood Project, recently the subject of a right to mine agreement with Norton Gold Fields, other other projects on the Kunanalling and Zuleika shears, the recently discovered Telegraph project, the Carbine North project or any projects in the Ora Banda or Grants Patch areas.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 23rd October.

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